Spanish pensioners will see no increase in their monthly benefits before the elections (29 November), as rumour had it, but the minimum wage is expected ... to rise. There is simply not enough time to approve an increase in pensions, as this would require the November inflation figures, which are due to be published on Friday, 27 November.
The government, however, does intend to push through the royal decree-law setting out the new pensions while it remains in office and "as soon as possible", that is to say, in December, to ensure pensioners start the new year with the increase in their pockets.
Economy Minister Carlos Cuerpo made this announcement in an interview on TVE. "Such a pension increase in December would be perfectly justified, once the adjustment is announced on 27 November," he said.
Since 2022, contributory pensions have been automatically increasing in line with the average inflation rate over the previous 12 months, from December to November, without the need for the government to approve the new increase.
The usual procedure for doing so would be to include it in the general state budget, but as no such budget has even been tabled during this parliamentary term, the government has approved the adjustment each financial year at the last Cabinet meeting of the year.
However, everything suggests that this year, due to the elections, this measure may even be brought forward and pushed through as soon as possible, according to Cuerpo's comments. "This government is going to do it as soon as possible. At the first opportunity we have, we will do it," he stated.
An increase of over 3.6 per cent
The expected rise will be around 3.6 per cent, according to Funcas (savings banks foundation) calculations. This would be the third-largest increase since 2010 for the more than 10.2 million pension recipients.
As a result, the average pension will rise by around 50 euros in January and will reach 1,424 euros a month for the first time, representing an extra 700 euros or so a year.
The largest group (more than 6.7 million pensioners) will see their monthly payments rise by more than 56 euros to over 1,632 euros a month.
Those covered by the general scheme will, for the first time, see their monthly payments approach 1,800 euros (+62 euros), while the self-employed will receive just over 1,100 euros following a rise of 38 euros.
Sharp rise in the minimum wage
What is almost certain is the new increase in the minimum wage in the middle of the election campaign. It has raised by 66 per cent since the current coalition government's start of term.
The intention is to bring this measure before Cabinet prior to the elections, even though this is not the usual practice, as it is normally delayed until well into the year.
Second Deputy Prime Minister Yolanda Díaz has sped up the process this year and asked the committee of experts to draw up a recommendation by the end of October, so that it can then be negotiated with the trade unions and employers' organisations and approved immediately.
Cuerpo also views this favourably. During the interview, he emphasised the importance of finalising the new amount, which, regardless of what the experts say, would therefore not fall below the annual inflation rate. "We are set to enter 2027 without a government and to reduce that uncertainty it is important to see whether we have been able to finalise that increase," Cuerpo stated.